Erotion of Share Capital
This query is : Resolved
Ramalinga H.B
(Querist)
08 May 2009
Hi,
When i was doing statutory audit, i observed that, the share cap & reserves were totally eroded by the brought f/w & currenty year losses in the balance sheet. My queries are;
a) Is the statutory auditor required to qualify the report?
b) Is there any other statutory implications on this balance sheet?
Kindly reply soon....
Ram
When i was doing statutory audit, i observed that, the share cap & reserves were totally eroded by the brought f/w & currenty year losses in the balance sheet. My queries are;
a) Is the statutory auditor required to qualify the report?
b) Is there any other statutory implications on this balance sheet?
Kindly reply soon....
Ram
CA Nitin Wadhwani
(Expert)
10 May 2009
a)No need to qualify the audit report unless the financial statements are not true and fair.
b)There would be reporting of losses under a particular clause of CARO, 2003 report which is a part of auditor's report.
b)There would be reporting of losses under a particular clause of CARO, 2003 report which is a part of auditor's report.
Parveen Bansal
(Expert)
11 May 2009
Audit report need tobe qualified, if there is any concern on basic accoutning assumption of "going concern".
CA Nitin Wadhwani
(Expert)
11 May 2009
There is no clarification of going concern concept in the question.
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